July 27: Experts have stressed on policy intervention to minimize the impacts of Nepal’s graduation from least-developed country (LDC) on the pharmaceutical industry of the country and to ensure access to medicine in an affordable way.

Speaking at a workshop on ‘Preparedness of Nepal’s pharmaceutical sector in the face of LDC graduation,’ the experts discussed the challenges Nepali pharmaceutical industry will face in the context of new intellectual property regime after Nepal’s graduation from LDC.

The workshop was jointly organized by South Asia Watch on Trade, Economics and Environment (SAWTEE) and Third World Network (TWN) in Kathmandu on Tuesday.

They identified the major policy and institutional challenges for the optimal use of Trade Related Aspects on Intellectual Property Rights (TRIPS) flexibilities, and suggested way forward during the workshop, SAWTEE said in a statement.

Inaugurating the programme, Dr Paras Kharel, executive director of SAWTEE, began by emphasizing the flexibilities that Nepal receives as an LDC and the preparedness of the pharmaceutical sector for the challenges it may encounter after 2026. 

Dr Posh Raj Pandey, chairperson of SAWTEE, presented the findings of the draft report “Preparedness of Nepal’s Pharmaceutical sector to cope with the challenges of the country’s LDC graduation” jointly prepared by SAWTEE and TWN. 

Dr Pandey suggested that Nepal could still avail different flexibilities even after the graduation, immediately during the transition phase and later as a developing countries too while strengthening the capacity of domestic pharmaceutical manufacturers. 

Prajwal Jung Pandey, president of the Association of Pharmaceutical Producers of Nepal (APPON), stated that the patent registration process for pharmaceutical companies in Nepal is complex and cumbersome. He mentioned that Nepal has not been able to effectively grab the benefits provided to LDCs. 

Dr Shiva Prasad Shrestha, senior vice president of Nepal Medical Association, lamented that Nepal’s pharmaceutical companies are limited to producing basic drugs rather than complex and life-saving drugs. He also stated that unless the government accords effective protection to domestic producers, Nepal’s pharmaceutical sector will have a difficult time surviving. 

KM Gopakumar, senior research and legal advisor to TWN, emphasized that an apt policy response is needed to minimize the impacts of LDC graduation on domestic producers and to ensure access to medicine in an affordable way.

While the draft law on intellectual property is generally in the right direction, there are rooms for improvements. Likewise, he highlighted the roles that government could play in strengthening the pharmaceutical sector, for instance through providing incentives such as tax breaks in the use of IP flexibilities, favoring domestic producers in procurement policy, providing R&D funds, and by ensuring that patents apply only to inventions, and not to discoveries. 

In the closing remarks, Bharat Bhattarai, director general of the Department of Drug Administration, stated that the government has acknowledged the need for policy reforms in the pharmaceutical sector and the findings of the study has been successful in providing robust policy recommendations. Bhattarai stressed that a holistic approach is needed among stakeholders to invigorate the pharmaceutical sector. 

According to SAWTEE, the workshop was attended by policy makers, experts from the pharmaceutical sector, medical professionals, representatives from academia, activists and civil society members.